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SIX Suffers Another Blow As S&P Cuts Rating


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NEW YORK, April 16 (Reuters) - Standard & Poor's cut its corporate credit rating on Six Flags Inc (SIX.N) to "D", citing the theme park operator's decision to delay a $7 million interest payment this week.

The "D" rating largely reserved for companies that have defaulted a payment, which Six Flags has not done, but the S&P can apply the rating when the borrower is under severe financial stress....

Use of the grace period does not usually constitute a default and the company said it had $210 million in liquidity.

But in a March securities filling, the company warned it could buckle under its massive $2.4 billion debt load.

Further, Six Flags said it may have to file for Chapter 11 bankruptcy protection if it cannot negotiate terms with its creditors or refinance its debt. The company must pay a $318.8 million cash payment by Aug. 15....

http://www.reuters.com/article/marketsNews...20090416?rpc=44

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